ReneSola Ltd ( SOL Quick Quote SOL - Free Report) has recently signed a 20-year power purchase agreement (PPA) with Northern California-based Valley Clean Energy for a solar and battery system. Per the deal terms, ReneSola will add 20 megawatts (MW) of solar power and 6.5 MW/26 MWh (4-hour) of battery energy storage to the Northern California grid, which will serve Valley Clean Energy's customers.
The project, located in Madison, Yolo County, CA, is expected to reach commercial operations by the third quarter of 2022.
How Will This PPA Benefit ReneSola?
The PPA with Valley Clean Energy is ReneSola's first long-term agreement for a solar-plus-storage system. Notably, alongside providing significant benefits to the local community, this agreement will be instrumental for ReneSola to continue expanding the scale of its solar energy development platform and grow its pipeline in the United States.
U.S Solar Market Prospects
The United States remains a lucrative market for solar players’ expansion, keeping in mind the illustrious growth opportunities in the nation. Per a
Wood Mackenzie report, the U.S. solar market is expected to install nearly 100 GWdc of solar from 2021-2025, 42% more than what was installed over the last five years. Notably, to reap the benefits of this expanding solar market in the United States, the company has been making every possible effort to boost profits. As of Sep 30, 2020, the company had 300 MW worth of a late-stage project pipeline in the United States and expects the project pipeline in core markets of the United States and Europe to reach 1 GW by the end of 2020. No doubt, the latest PPA reflects a step forward toward ReneSola achieving this target. Battery Energy Storage Prospects in the U.S.
The U.S. electric utility industry is steadily shifting its focus toward renewable sources for electricity generation, led by the heightened environmental awareness across the nation. Per a
forecast by the U.S. Energy Information Administration (EIA), utility-scale battery storage power capacity is poised to exceed 2,500 MW by 2023. Such growth prospects might have encouraged solar players like ReneSola to increase focus on enhancing their battery storage portfolio. In October, Canadian Solar ( CSIQ Quick Quote CSIQ - Free Report) inked a long-term service agreement with Goldman Sachs Renewable Power LLC, to deliver and integrate a 75 MW / 300 MWh lithium-ion battery storage solution into the 100 MWac Mustang solar plant in California. The agreement will enable California's power grid to absorb and integrate higher levels of reliable, safe and affordable renewable energy. In April, First Solar ( FSLR Quick Quote FSLR - Free Report) signed two 15-year PPAs with Monterey Bay Community Power (MBCP) and Silicon Valley Clean Energy (SVCE), which feature a 20 MW of battery storage capacity, capable of delivering electricity for 2.5 hours. Price Performance & Zacks Rank
In a year’s time, shares of ReneSola, carrying a Zacks Rank #3 (Hold), have surged 306.8% compared with the
industry’s rise of 182.3%. You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here A better-ranked stock in the same space is SunPower Corporation ( SPWR Quick Quote SPWR - Free Report) , carrying a Zacks Rank #2 (Buy). SunPower delivered an average four-quarter earnings beat of 49.23%. These Stocks Are Poised to Soar Past the Pandemic
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